Answer a):-
Variable cost per unit = $3.5 per unit
Contribution margin ratio (2019)=30%
Workings:-
In 2019,
Break even in dollar sales = Fixed costs/Contribution margin ratio
Contribution margin ratio = Fixed Cost / Break even sales in dollar
Contribution margin ratio =92700/309,000
Contribution margin ratio = 30%
Variable cost ratio = 1- Contribution margin ratio
Variable cost ratio = 1 - 30%
Variable cost ratio = 70%
Variable cost per unit = 5 *70%(selling price * variable cost ratio)
Variable cost per unit = $3.5
Question 4 View Policies Current Attempt in Progress In 2019, Cullumber Company had a break-even point...
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